Insurance executives knock on FinMin door for input tax credit fix

The insurance chiefs in a letter submitted to the finance ministry officials on Friday sought for implementation of the new GST rates on a prospective basis, while allowing for ITC on renewal premiums

Insurance companies’ chief executives sought some leeway from the Finance Ministry on Wednesday to make an allowance for input tax credits on individual health and life insurance policies, whose Goods and Services Tax (GST) levy has been slashed to zero by the GST Council, effective from September 22. 

The insurers’ parleys with the Finance Ministry highlighted that denial of input tax credit (ITC), for instance, on commissions paid to agents that are subject to 18 per cent GST, puts them in a difficult position to carry out the expected reduction in insurance premium rates. 

The insurance industry chiefs had also